New York, May 29, 2026, 09:11 (EDT)
SentinelOne shares slid nearly 20% before the bell Friday. The cybersecurity firm issued a second-quarter revenue outlook that missed estimates and plans to eliminate about 8% of jobs, saying it will focus spend on artificial intelligence, data, cloud and endpoint security. Shares closed up 0.4% at $18.02 Thursday and jumped 27% in May.
Investors have hit software stocks hard when companies boast about AI demand but fail to deliver on short-term growth. SentinelOne is pitching a bigger security platform as big clients keep a tight grip on spending, checking contracts and slowing down deal closings.
Shares traded in early hours before the main session, when volume is lighter and prices can jump around more. Nasdaq says normal U.S. market hours run 9:30 a.m. to 4 p.m. Eastern, with premarket trades from 4 a.m. to 9:30 a.m. The NYSE lists Memorial Day on May 25 and Juneteenth on June 19, not May 29.
SentinelOne put out second-quarter revenue guidance of $289 million to $291 million, a touch under the $292 million analyst consensus from LSEG, Reuters reported. The company sees adjusted EPS in a range of 6 to 8 cents, while analysts were looking for 8 cents. First-quarter revenue was $276.7 million, missing the $277.3 million estimate.
SentinelOne reported first-quarter revenue up 21% from a year ago at $277 million. Annualized recurring revenue climbed 23% to $1.163 billion. The number of customers with $100,000 or more in ARR rose 17% to 1,702.
SentinelOne reported adjusted, or non-GAAP, earnings of 4 cents a share, topping the 2 cents analysts surveyed by FactSet had forecast, according to Investor’s Business Daily. But shares still faced pressure as investors focused on the July-quarter guidance.
SentinelOne expects to take a one-time charge of about $25 million for the restructuring, according to its SEC filing. That includes around $15 million of cash costs. The filing said $12 million to $14 million is for severance and benefits, and $10 million to $12 million is related to stock-based compensation. The company expects to finish the plan in the fiscal second quarter.
Chief Executive Tomer Weingarten said the quarter was a “solid start,” pointing to demand for “machine speed defense” as AI shifts the way cyberattacks happen. Chief Financial Officer Sonalee Parekh talked about “operating leverage,” adding that the company is lifting its operating-income guidance. SEC
SentinelOne’s fight with bigger names isn’t going away. CrowdStrike, Palo Alto Networks and Microsoft are all in the mix, with Microsoft rolling security into its overall software package, Reuters said. That’s an issue as buyers look to combine vendors instead of paying for more.
But a reset like this can hurt, too. If job cuts start to slow down sales or product delivery, SentinelOne could risk missing out on gains from its AI plans, especially as customers decide whether to stick with bigger security platforms. If budgets stay tight, a better margin alone might not be enough to lift the stock. The company also warned that real restructuring costs could end up different from current estimates and that local labor rules could drag out the process.
